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Ryan's Attack Energizes GOP Crowd; GOP's Biggest Night In Four Years; Isaac Continues Slow, Torturous Path; Relentless Isaac Forces Dramatic Rescues; Gas Price Gouging Arrests After Isaac; Three NATO Troops Killed In Afghanistan Attack; Citigroup To Pay $590M To Settle Suit; First Lady Visits Late Night; Obama On The Attack; Romney Set To Take RNC Stage; Checking Ryan's Facts; Replacement Refs to Start Week One; Isaac Continues Slow Journey North; Colorado Shooting Suspect Back in Court; Romney Wants to Repeal Obamacare

Aired August 30, 2012 - 10:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(COMMERCIAL BREAK)

CAROL COSTELLO, CNN ANCHOR: Stories we are watching now in the NEWSROOM --

(BEGIN VIDEO CLIP)

REPRESENTATIVE PAUL RYAN (R), VICE PRESIDENTIAL CANDIDATE: If you are feeling left out or passed by, you have not failed. Your leaders have failed you.

(END VIDEO CLIP)

COSTELLO: Paul Ryan making his case at the Republican National Convention. Now the man at the top of the ticket gets ready for his big night.

Tropical Storm Isaac keeps hammering Louisiana with more flooding, more rescues and evacuations are under way, and nearly 1 million people across five states without power.

And replacement referees. A new group of men and women in striped shirts will be on the field for week one of the NFL. But will players be there, too? NEWSROOM starts right now.

Good morning, thank you so much for joining me. I'm Carol Costello. We begin with the Republican Party's biggest night in four years. Just hours from now, Mitt Romney will accept the presidential nomination and deliver the most important speech of his life.

And he may have a hard act to follow. Last night, his running mate, Paul Ryan, energized the crowd, promising deliver a new America and exorcise the demons of a failed presidency.

Heads up, we will take a break from the usual short excerpts and run longer chunks of Ryan's sound to give you a better sense of what he said.

(BEGIN VIDEOTAPE) RYAN: It began with a financial crisis. It ends with a job crisis. It began with a housing crisis they alone didn't cause. It ends with a housing crisis they didn't correct. It began with a perfect AAA credit rating for the United States. It ends with a downgraded America.

We will not duck the tough issue, we will lead. We will not spend the next four years blaming others. We will take responsibility. We will not try to replace our founding principles. We will reapply our founding principles.

The work ahead will be hard. These times demand the best of all of us, all of us, but we can do this we can do this. Together, we can do this we can get this country working again. We can get this economy growing again.

We can make the safety net safe again. We can do this. Whatever your political party, let's come together for the sake of our country. Join Mitt Romney and me. Let's give this everything we have. Let's see this all wait through. Let get this done!

(END VIDEOTAPE)

COSTELLO: So Paul Ryan and a host of others have set the stage for Mitt Romney, and I'm sure you've heard, Romney will have to deliver earth speech of his life to win over voters.

CNN's Brooke Baldwin takes a look at the political speech that could make or break his chance at the White House.

(BEGIN VIDEOTAPE)

BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): It's a microphone moment unlike any other in politics, the presidential convention speech.

UNIDENTIFIED MALE: To old, big spending, do nothing, me first, country second crowd, change is coming.

BALDWIN: A moment that could either catapult former Governor Mitt Romney to next President Mitt Romney or not.

PROF. COSTAS PANAGOPOULOS, POLITICAL SCIENCE, FORDHAM UNIVERSITY: There's always the possibility that something very dramatic and very exciting might happen at a convention and that could hit the reset button on the conversation that's been happening over the past few months.

BALDWIN: As far back as Barry Goldwater, party nominees have got a post-convention popularity bump. Sixty six percent of voters told CNN pollsters that the candidates' convention speech matters.

FORMER U.S. PRESIDENT RONALD REAGAN: Family, work, neighborhood, peace and freedom.

BALDWIN: But, according to Pew Research Center, just three of the last 12 wannabe presidents have improved their image after those conventions. Obama and both Bushes --

UNIDENTIFIED MALE: Read my lips, no new taxes.

FORMER U.S. PRESIDENT GEORGE BUSH: I'm running with a compassionate, conservative philosophy.

BALDWIN: That same Pew study shows Romney's challenge. His unfavorability rating is 52 to 37 percent.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I should also tell my story. I'm also unemployed. I'm not concern about the very poor. We have a safety net there.

BALDWIN: He steps up to the Tampa podium knowing words count.

ROMNEY: I like being able to fire people that provide services to me.

BALDWIN: His latest choice of words could determine whether the voters get to hire or fire him.

(END VIDEOTAPE)

COSTELLO: And Brooke Baldwin joins us now from the RNC in Tampa. I know is a little bit off topic, but never hurts to have a special guest further energize the RNC. We hear there's a rumor that Clint Eastwood may show up?

BALDWIN: Can you imagine Dirty Harry speaking at this forum? Step for me, Carol Costello, I mean, what a night it will be? Here is what I can tell you. Here's what I can confirm.

That the Romney camp is telling CNN, yes, there is this mystery guest, so there will be all these character witnesses, you know, folks that worked with Romney, Staples and during the Salt Lake City Olympics.

And also when he was, you know, running the state of -- then governor of Massachusetts, but we cannot definitively tell you that Clint Eastwood is showing up. Here is what I can say Clint Eastwood a couple of weeks ago at this huge fundraiser in Sun Valley, Idaho, did indeed endorse Mitt Romney, which is sort of interesting.

We all remember, of course, watching the Super Bowl not too many months ago and it was that, you know, semi-controversial ad promoting Chrysler in which it sort of appeared to be a more or less subtle push toward Obama.

But we now know that Clint Eastwood has indeed endorsed Romney. Will he show up? We will have to wait and see -- Carol.

COSTELLO: I have heard rumors he is starting in Florida. People are excited about the possibility.

BALDWIN: They are watching. Might he be in Tampa? Might be lurking somewhere in the CNN Grill? I will look around the corner and try to find out, but so far, no signs.

COSTELLO: Yes, Romney is going to speak. I'm just kidding about that part. But amazing how many people are talking about Clint Eastwood. Thanks so much. Brooke Baldwin reporting live from Tampa today.

CNN's prime time coverage continues tonight at 7 Eastern with Wolf Blitzer and then at 10 Eastern, the Republican presidential nominee, Mitt Romney, will deliver that speech.

On to Isaac now, it is moving tortuously slow, drenching and flooding everything in its path. At least one tornado has touched down in Mississippi. One death has been confirmed in that state, blamed on a falling tree.

Police now going door to door, warning residents in Washington Parish, Louisiana, to evacuate. National Guard troops are looking for people stranded in St. Johns Parish, Louisiana. Hundreds had to be rescued after becoming trapped.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Why did you decide to stay?

FRED LESLIE, TRAPPED RESIDENT: I didn't think it would happen again. I had two trucks, a boat I never used.

UNIDENTIFIED MALE: You were here for Katrina?

LESLIE: We left for Katrina, but that's it. Had enough, I ain't coming back no more.

(END VIDEO CLIP)

COSTELLO: Martin Savidge is in New Orleans. There's no shortage of stories like that, Martin.

MARTIN SAVIDGE, CNN CORRESPONDENT: No, there aren't, Carol. You know what's interesting is that authorities now in certain areas of Louisiana are telling people to evacuate. This is after the storm has gone by.

You don't necessarily anticipate that. But that is the case for a number of communities where now, authorities telling people, look, we know the water is going to rise. We also know your house is going to be below the level where the water is going to rise, too you better be on your way and get out and get out now.

We are at the 17th Street pumping station, one of the stations that really helped to keep New Orleans in very good shape during Hurricane Isaac and that's the irony. Now it seems to be all the communities outside that flood protection system that especially today, are running into systems. Lake Pontchartrain is extremely full.

You've got a strong southerly wind. So, what that means is that the water is not draining away. All the rivers up to the north of Lake Pontchartrain can't drain into the lake and then drain into the gulf.

Lake Pontchartrain can't drain out, which is why on the north shore of Lake Pontchartrain, Slidell, in particular, you are seeing a lot of problems.

But you also yesterday had flooding in Plaquemines Parish, to the south of New Orleans. Yesterday as well as well, a place called la place, the west of New Orleans. There, too, is where the coast guard was in action.

They had to launch their helicopters try to rescue people that were trapped again in their homes. The rescues went ahead. They were able to save families, in some cases families and their pets.

That's actually very important, the reason many people don't leave. Here's one of those who was rescued talking about what it was like.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I think he had a harder time because he had the bigger dog, which I'm sure she --

UNIDENTIFIED MALE: More of a appreciation for what these guys do I can tell you that.

UNIDENTIFIED FEMALE: Yes. Yes.

UNIDENTIFIED MALE: They are God.

UNIDENTIFIED FEMALE: Top notch.

UNIDENTIFIED MALE: God in a helicopter.

(END VIDEO CLIP)

SAVIDGE: Yes, there's nothing like being rescued by that helicopter when you're in trouble. It is not just the coast guard, of course, it is the local municipalities. It is the sheriff's offices.

And it's the Louisiana National Guard that are active today either warning people to get out of the way or rescuing those who were trapped by high water. And the rain continues to come down -- Carol.

COSTELLO: Martin Savidge reporting live from New Orleans this morning.

Isaac pushed up gas prices nationwide, I'm sure you've noticed. That is leading to accusations of price gouging. In Mississippi, two gas station owners have now been arrested.

The State Attorney General's Office says it has received almost 160 calls about gas price complaints. The nationwide average at the pump right now, by the way, stands at $3.83 a gallon.

Experts predict prices will drop in a few days after refineries come back online. They are predicting I think Monday.

Mitt Romney gives the biggest political speech of his career tonight, but will it be enough to win over voters beyond the base? I will talk to a former Republican governor of Virginia and he will tell us what mitt needs to do to seal the deal.

(COMMERCIAL BREAK)

COSTELLO: Checking our top stories at 13 minutes past the hour. Three NATO troops from Australia were killed in an attack in Afghanistan. Soldiers said to be relaxing and talking when someone in an Afghan National Army uniform opened fire.

Officials say the shooter escaped by scale willing a fence. Fourteen NATO troops have been killed in this type of attack so far this month.

In money news, Citigroup will pay nearly $60 million to investors to settle a class action suit. Shareholders claim the bank misled them about the firm's health in the lead up to the financial crisis. Citibank denies wrongdoing, but says it was in the bank's best interest to settle.

The first lady is not hiding during the Republicans' big week. Michelle Obama was a guest on David Letterman last night where she told the late night host she has not been paying close attention to what's going on in Tampa.

(BEGIN VIDEO CLIP)

MICHELLE OBAMA, FIRST LADY: I -- I as the wife of the guy they are running against, I tend not to watch it, but I think it's important for everyone to watch these conventions.

Because this is the time you get know the party, you understand the platform, you understand the candidates. You know, this is technically where the campaign begins.

So I think it's very important for everyone to watch as much of both conventions as possible to make their decisions. I didn't watch it.

(END VIDEO CLIP)

COSTELLO: Mrs. Obama was also part of the Rachael Ray and Dr. Oz shows yesterday. The president, her husband, he is breaking with campaign tradition, hitting the trail while Republicans rally around Mitt Romney and their convention.

And given the heated tone of the campaign so far, it's probably no surprise there is no let up in the attacks.

(BEGIN VIDEO CLIP) BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: I'm telling you, on almost every issue, he wants to go backwards, sometimes all the way to the last century. Maybe the steam engine is more his speed.

(END VIDEO CLIP)

COSTELLO: Jim Gilmore is a former governor from the state of Virginia. He joins us now from the Republican convention. Welcome, Governor.

JIM GILMORE (R), FORMER VIRGINIA GOVERNOR: Hello, Carol. How are you?

COSTELLO: I'm good. Thank you so much for joining us. You heard how President Obama is characterizing Governor Romney. What can he say to combat that tonight?

GILMORE: Well, you know, I appreciate the fact that we are in a political season and it's sort of a cut and slash and all that kind of thing, but I just don't think it's very presidential for the president to say that his political opponents are trying to go backward and making wise guy statements like the steam engine and all that kind of thing.

I mean, he has always been kind of likable, but that isn't particularly likable. This is a serious business about the serious business of the future of the United States of America. The Republicans are here in Tampa in order to address those issues and talk about the economic concerns and crises facing the American people.

And what we have to do to move the country in the right direction after four years of basically drifting inactivity. I think it is better to be respectful of your opponents and the hard work going into it in Tampa.

COSTELLO: Governor, part of this convention, a big part, was to redefine Mitt Romney in the eyes of voters. In her latest column for the "New York Times" Maureen Dowd, and I understand it is Maureen Dowd.

But this is what she writes in the effort to redefine Romney. She says, "It has failed. The synthetic convention aches with the enormity of the effort involved in trying and failing to make Mitt alluring and compelling. The fruitless, endless hunt for the enigma code that will decipher the cipher."

In other words she is saying, we don't know Mitt Romney any better than we did before the convention.

GILMORE: I like Maureen Dowd and like to read her material, but the truth is everything the people have seen this week in Tampa shows concern for working men and women in this country, a concern for people who had jobs and then all of a sudden, don't have jobs, working in a lesser job. Young people, Paul Ryan was very specific about it last night, very clear. Young people who need to get started and can't get started. Our concern is for the people of the United States. And things aren't going to get any better if we just keep on the same path doing the same thing.

COSTELLO: Talk about the likability factor because that's really important in voters' minds. You know, John Avlon wrote a column today for the "Daily Beast."

And he said, "We expect our presidential candidate to come with a character narrative, however big or small, a hero's journey of suffering and redemption that informs their judgment, arming them with empathy and wisdom once they reach the oval office. If Mitt Romney has such a story, he has not shared it yet."

GILMORE: I think what Mitt Romney does and plenty of Republicans do and Paul Ryan does and I think he was real clear about it, it was a very speech last night and I think it will be another one tonight.

And I do think that Mitt Romney needs to show his empathy and concern for the people, but why run for president if you're not concerned about the people of the United States? We know he is. We know he is. And he is going to express that tonight.

And frankly, everything that's come of Tampa this week, the Republicans expressing concern about the distress that the American people have faced over the last four years. They want somebody who can actually get the job done.

And it just hasn't gotten done in the last four years it is time to pick somebody that can do the job and Mitt Romney is that guy.

COSTELLO: I think voters also want to know that the president cares about him. And I'm going to bring up the wealth thing. We all know Mitt Romney is extremely wealthy.

I think there's a sense, even among some Republicans and I have talked to them, so I know this, that Mitt Romney hasn't had to suffer because he's had -- he's had things that many others, most people in the country, haven't had. You know, parents with money to fall back on.

GILMORE: I think it's a really interesting narrative we are seeing and what makes this election so crucial is that sort of an effort being gone on, change the culture in America to say people shouldn't strive.

That they shouldn't succeed earthquake shouldn't gather to themselves success, which they can then share with other people, family people, their employees, people who are working with them in order to create success.

America's always been about the striving for success. It's the engine that makes this country go it almost feels like the president wants to turn that engine off.

Frankly, you can do that for a few years, but after a while, you know, the success isn't there the wealth isn't there, we begin to go down. The Republicans -- the Republican Party and Mitt Romney and Paul Ryan want this country to continue to move ahead.

That is what this convention is about. That's the theme and message that we have seen all week consistently that will carry into the campaign. I'm for it and I think we all are.

That's what we want for America what we aspire to for America, greatness and the opportunity to do something good instead of settling and settling for less and less.

COSTELLO: Governor Gilmore, thank you so much for being with us to share your thoughts. We appreciate it.

GILMORE: Good. Thank you very much.

COSTELLO: Back to our other big story for this Thursday morning, scenes from Isaac. Some of them have been heart wrenching. In many ways, the devastation has equalled Katrina, especially in Plaquemines Parish where the levees have not yet been totally rebuilt. Here's Parish President Bully Nungesser.

(BEGIN VIDEO CLIP)

BILLY NUNGESSER, PRESIDENT, PLAQUEMINES PARISH, LOUISIANA (via telephone): We have over a billion and a half dollars for federal levees that have not been started yet. But absolutely, my home had more damage for this storm than Katrina.

I rode out Katrina 14 miles from the eye of that storm and yet I've seen more damage to my home from these winds that kept on for two days.

(END VIDEO CLIP)

COSTELLO: Joining me now is Pete Gautier, the sector commander for the Coast Guard Sector New Orleans. Captain, welcome.

CAPTAIN PETER GAUTIER, SECTOR COMMANDER, COAST GUARD SECTOR (via telephone): Good morning, Carol.

COSTELLO: The Coast Guard has been busy. I mean, are you surprised by that? Did you think more people would evacuate?

GAUTIER: Well, you know, Carol, all Emergency Management agencies have been very busy for the last -- really for the last week, getting ready for this storm and now in the past 48 hours, responding to it.

When we get got a little bit of a good weather window yesterday, we brought our search and rescue helicopters back from Safe Haven in Houston and put them immediate fly service to aid search and rescue operations.

We got up into a place a little bit north of New Orleans to rescue people off of roofs. We rescued some mariners who are in distress in the river and in the bayous. So, it has been very busy.

COSTELLO: Tell me what has been the most difficult rescue for you so far.

GAUTIER: Well, I think the weather conditions have been what's most challenging about doing the helicopter rescues. You know, I think the really brave air crews are just close in some of the weather conditions they were flying in.

But really this is a team effort together with the terrific efforts on the part of the parish emergency management folks, the National Guard and the state of Louisiana, to do what we need to do to save people.

COSTELLO: We are looking at pictures now of a rescue from someone's attic and this man apparently has three or four dogs. How have pets kind of hindered your rescues if they have?

GAUTIER: I think since Hurricane Katrina we've -- we've learned that we need to take care of people and their pets, too. So, I think that, you know, we do the rescues with the people and their pets because they are so important to the health and well being of people.

COSTELLO: Captain Gautier, thank you so much for joining us this morning.

GAUTIER: Thank you.

COSTELLO: Paul Ryan gets his chance to woo delegates at the republican national convention, but was everything he said last night absolutely true? We put his speech to the truth test.

(COMMERCIAL BREAK)

COSTELLO: Now is your chance to talk back on one of the big stories of the day. The question for you this morning, why is race an issue in campaign 2012?

The Republican Party is eager to show America its diversity. Their convention line up featured rising stars of races, but if you ask Democrats, Republicans are guilty of race baiting in 2012.

Case in point, this Romney ad saying President Obama is trying to gut welfare.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: On July 12th, President Obama quietly announced a plan to gut welfare reform by dropping work requirements. Under Obama's plan, you wouldn't have to work and wouldn't have to train for a job. They'll just send you your welfare check.

(END VIDEO CLIP)

COSTELLO: CNN's fact checked this ad, it is absolutely untrue. Nevertheless, Romney aides say they will continue running it because it's effective. Republicans say it is an example of big government helping those who really should be helping themselves. Democrats say it's racist.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Getting rid of the work requirement for welfare is dishonest. Everyone has pointed out it is dishonest. You are playing that little ethnic card there you can play your games and giggle about it.

But the fact is your side is playing that card. You start talking about work requirements. You know what game you're playing and everybody know what is game you're playing. It's a race card.

(END VIDEO CLIP)

COSTELLO: Republicans accused Democrats of having their own problem with race baiting. Remember when Vice President Joe Biden made his comment in front of an audience that included African- Americans?

(BEGIN VIDEO CLIP)

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES OF AMERICA: Look at what they value. Look at their budget what happened they are proposing. Romney wants to let the -- he said in the first hundred days, he will let the big banks once again write their own rules. Unchain Wall Street. They are going to put y'all back in chains.

(END VIDEO CLIP)

COSTELLO: That is a shame we are still fighting about race in 2012. But it's not likely to end soon. Just yesterday, Republican star Mia Love's Wikipedia page allegedly hacked with racist and sexist rants.

She is African-American. Political analyst Larry Sabato says since America is polarized along racial lines with minorities favoring the president and whites favoring Romney, expect both parties to continue to encourage polarization.

The talk back question for you, why is race an issue in the 2012 campaign? Facebook.com/carolcnn. Facebook.com/carolcnn. Your comments later this hour.

A rousing speech at the Republican National Convention and Paul Ryan basks in the spotlight. Today, he is also feeling heat for some of live claims. We're going to check the facts for you.

(COMMERCIAL BREAK)

COSTELLO: Good morning. Thank you for joining us this morning, I'm Carol Costello.

Tonight, Mitt Romney delivers his prime time speech, formally accepting the GOP's presidential nomination. He'll inevitably face comparisons to his running mate, Paul Ryan, who delivered a rousing performance last night but Ryan is also facing criticism for some questionable claims.

The Obama campaign was quick to pounce with this online ad.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I thought it was a very constricted, very negative, nasty speech.

(END VIDEO CLIP)

COSTELLO: CNN White House correspondent Brianna Keilar is at the RNC in Tampa. So Brianna, you're going to do a fact check for us.

So first up, Ryan's lament over a General Motors factory closing in his hometown of Janesville, Wisconsin. He paints that as Obama's failure. What are the facts?

BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: We actually found the way he presented it in his speech last night to be true but incomplete. And he's talked about this before where it's been more misleading.

But first, let's listen to what he said last night, Carol.

(BEGIN VIDEO CLIP)

RYAN: Right there at that plant, candidate Obama said "I believe that if our government is there to support you, this plant will be here for another hundred years." That's what he said in 2008. Well, as it turned out, that plant didn't last another year. It is locked up and empty to this day.

(END VIDEO CLIP)

KEILAR: Now, it actually did last another year, although it did close. And the closure was planned before President Obama became President. This is actually what Ryan said last night as a follow of what he said August 16th, where he said that President Obama promised to keep the plant open. He did not go as far as that last night, maybe because, Carol, President Obama did not promise to keep the plant open.

COSTELLO: All right.

So here's another Ryan talking point that's drawing fire. Ryan claims President Obama is gutting Medicare to pay for quote, "Obamacare". So what's the truth?

KEILAR: Well, let's listen first to what he said. Here he is.

(BEGIN VIDEO CLIP)

RYAN: $716 billion funneled out of Medicare by President Obama. An obligation we have to our parents and grandparents is being sacrificed all to pay for a new entitlement we didn't even ask for.

(END VIDEO CLIP)

KEILAR: Now it's kind of debatable whether these are actually cuts. Because what they do is they reduce -- pardon me -- reduce the growth of costs in Medicare and not by reducing guaranteed benefits of Medicare but by reducing payments to hospitals, doctors, what they say, Carol, to be on the provider side. So this isn't exactly correct.

And what is really going on here is Paul Ryan and Mitt Romney, they are trying to inoculate themselves against the criticism over Paul Ryan's budget, which of course, would voucherize Medicare. So there's certainly a desire there to fire back and this is the way that they have been doing it ever since Paul Ryan was picked as Mitt Romney's veep.

COSTELLO: Well, we'll likely to hear that line many, many times in the month to come. Well, actually, just the months to come. Thank you so much, Brianna Keilar, reporting live for us.

Ann Romney says she is a fan of the TV show "Modern Family." So the series creator has offered her a role.

Some unfamiliar faces will be on the field for week one of the NFL; a new group of men and the first woman. They'll referee regular season football games but the players union is not too happy about that. We'll tell you why.

(COMMERCIAL BREAK)

COSTELLO: That was Bruce Springsteen. Now he's been playing ballparks as part of the current U.S. tour. Now, "The Boss" is joining with Major League Baseball and our sister network, TBS, to promote post-season coverage. Springsteen lends his song "Land of Hope and Dreams". TBS coverage of the playoffs begins October 5th. And I hope my Tigers win.

Tonight is the final -- I had to get that in there, Carlos.

CARLOS DIAZ, HLN SPORTS ANCHOR: Yes.

COSTELLO: Tonight is the final night of the NFL pre-season and it may also be the most important for the NFL's replacement refs. The group of college and high school referees just found out they will be in place for the opening week of the season.

HLN's Carlos Diaz joins me. And the players aren't happy about this.

DIAZ: I -- I want to give both sides to this story. I want to give you the -- ok, here's -- here's the NFL side. What they want to do is they want to hire more referees so that they can have more referees on hand to pick and choose the best ones for each game. That's their side.

The other thing is they bring in $9 billion a year. If a referee wants to make a little more than $149,000 a year and you're stressing player safety, why wouldn't you just pay them an extra $40,000 a year? That's the thing; $40,000 is a lot to you and me, but when you're talking about protecting players that make $100 million and you're stressing player safety like crazy, I just don't understand.

And as you saw last night in the game between the Giants and the Patriots, that exhibition game, the referee had a tough time.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Both teams will -- both up -- both fouls were on the kicking team. Five-yard penalty.

(END VIDEO CLIP)

DIAZ: Way too many examples of that you can chuckle at that right there but let me ask you this question, ok?

COSTELLO: Ok.

DIAZ: What if on the opening weekend, the players see that they can play it fast and loose because the refs aren't calling everything and then you have a hit on a quarterback and then in retaliation, the other team's defense wants to put a hit on their quarterback, knowing that, hey, we can get away with this? And what if Peyton Manning goes down, because you wouldn't pay a referee an extra $40,000?

Now I said, I want to give both sides of this, but what people are talking about with this is that for a league that brings in so much money, you know, how can you not take care of the referees that police all of these guys traveling so quickly on the field?

COSTELLO: Ok. So the -- the players union, they are upset about this. Are they really saying they might go on strike?

DIAZ: No they can't because they signed a collective bargaining agreement last year. And you know by the way the players saying they are upset about this you know once the referees come back, they are going to be yelling at them like crazy again. If the players were so upset about this when they signed the collective bargaining agreement last year, they knew this was coming up this year, they could have easily said of we're going to sign this collective bargaining agreement but don't want ever to play for replacement referees. Let's get the referees' collective bargaining agreement down as well right now.

But they were truly in favor of the refs, yes they would have -- they would have done it the same time and they wouldn't have hung them out to dry in this way but of course the players want the real referees because they don't want to get hurt. So it's going to be -- here's the thing, week one, week one, it's all about week one. If it goes smooth, all the leverage shifts to the league. If you have big problems, all o this leverage shifts to the referees.

COSTELLO: Well, I know I'll be watching very closely. Carlos Diaz many thanks.

Isaac has been relentless, caused tremendous flooding. Just ahead, we'll take you live to another hard-hit area, Grand Isle, Louisiana.

(COMMERCIAL BREAK)

COSTELLO: The relentless storm continues, pounding Gulf Coast residents. We have confirmed reports of one death in Mississippi was caused by a falling tree. In Louisiana, more people are being told to evacuate. Ed Lavandera is in Grand Isle, Louisiana.

So this thing is a tropical storm and they still want people to stay away?

ED LAVANDERA, CNN CORRESPONDENT: Well, you know, the concern and the biggest problem throughout the region, Carol, is flooding, and it takes some time for the storm surge waters to move away. There's also questions about the way the water moves through the levee system.

So, you know, problems can arise in various parts, in different parts of the state at any given point. That's why, just because at bulk of this storm has now passed through the region there still are problems left in its wake. So, you know, those are the things that people will still have to be carefully monitoring and watching out for here in the hours ahead.

Here in Grand Isle though, Louisiana, where we rode out the storm, we are finally starting to get that break and we're seeing the water levels receding rather quickly, Carol. Where we are, we are still on the second floor of the deck of Dean Blanchard's home here in Grand Isle. Below us, we had probably close to six feet of water, five to six feet of water surrounding us here for most of this time during the bulk of this storm.

But we are now starting to get a break and we can see the water level starting to go down rather quickly. Here in the next couple of hours, we are going to venture out and take a drive around the island to get a better sense of the damage we have seen here. But you know, at the bulk of all -- through all of this Dean Blanchard had about six inches of water inside on the bottom floor of his home here in Grand Isle, Louisiana. And we took a little time we thought that would be a good time to sit down and talk a little bit with Dean Blanchard about what that was like.

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LAVANDERA: What's it like being trapped here, seeing all this water? DEAN BLANCHARD, GRAND ISLE RESIDENT: It is aggravating. I feel like getting in my truck and go ride but we took a little water a while ago. We're going to let it go down another few inches.

LAVANDERA: Gone down a little bit. I mean --

BLANCHARD: Probably dropped about five, six inches in the last hour. But it looks like it stopped, you know? That's what is weird. I was hoping it would continue to drop.

LAVANDERA: This is a sight that I just find amazing, when you sit here and you look out your side door.

BLANCHARD: Yes. Yes.

LAVANDERA: And you see water in front.

BLANCHARD: Well, everybody wants waterfront property.

(END VIDEO CLIP)

LAVANDERA: Well, you got to keep a sense of humor through all of this, Carol. The water is not rushing by there anymore like that. In fact, he's gotten out in his truck, he left just a little while ago to start driving around a little bit himself.

So, now it is just a matter of time before all this water disappears. The good news is from our vantage point, Carol, we can see dozens of homes around us, no structural damage. Many of the homes around here are built on stilts and the water and the storm surge can rush underneath it and then go back out to the Gulf of Mexico.

But we don't see much, if any, structural damage to the homes around us here.

COSTELLO: Oh, that's terrific. I spent a lot of time in Grand Isle during the Gulf oil spill. And everybody seems to be like Mr. Blanchard. Just a great sense of humor and a positive outlook and they have been down that road before. Ed Lavandera reporting live from Grand Isle, Louisiana.

On to Colorado now, where the man accused of killing 12 people and wounding nearly 60 others by opening fire during a midnight movie, he is back in court today. Today's hearing focuses on the notebook James Holmes sent to the University of Colorado psychiatrist just before that shooting. What's in that notebook could be the key to figuring out why the shooting happened in the first place.

Ted Rowlands outside the courthouse. Ted, tell us more about this hearing.

TED ROWLANDS, CNN CORRESPONDENT: Well, it's expected to be a big hearing, Carol. We are expecting Dr. Lynn Fenton that psychiatrist to be in court today. She may answer questions to the judge as to her relationship with James Holmes. The prosecution really wants this notebook. The defense says absolutely not this is privileged information.

It will also be interesting to see James Holmes' reaction. In other court appearances, he hasn't really focused in on any particular person, not even the judge in the courtroom. It will be interesting to see if he focuses in on his former psychiatrist when she's in the courtroom.

COSTELLO: Tell us more about this confidentiality law about whether these diaries could be turned to prosecutors. It's different in Colorado but whatever decision is made today could set a precedent, right?

ROWLANDS: Yes, because in the state of Colorado, they have two distinctions. They have doctor/patient privilege but then they also have a psychologist/patient privilege and it's much easier to get information through the doctor route. And that's why prosecutors want Dr. Fenton who is a psychiatrist -- there's no classification in Colorado for a psychiatrist. They want her to be looked at as a doctor in this case. Defense is saying that is hogwash, she is much closer to a psychologist. Whatever is decided in this will set precedent, because right now there is no precedent in Colorado law as to that distinction. So that will be an interesting part for the legal heads out here.

COSTELLO: Ted Rowlands reporting live from Colorado this morning.

You hear it all the time, Mitt Romney saying he wants to repeal Obamacare. What would happen if he did? We will break it down.

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UNIDENTIFIED MALE: We are really doing this, huh?

UNIDENTIFIED MALE: Yes.

UNIDENTIFIED MALE: Because I had stuff lined up for Christmas Eve.

UNIDENTIFIED FEMALE: Yes, Jay, it's last chance to enjoy family Christmas.

UNIDENTIFIED MALE: Until next year, you mean?

UNIDENTIFIED MALE: Mom, with all the snatchings.

UNIDENTIFIED MALE: Get out of my head, Luke.

UNIDENTIFIED MALE: Ok who is going to get the tree?

UNIDENTIFIED MALE: Oh, I will, I will. You know, get the wrong kind, people get upset.

UNIDENTIFIED FEMALE: You get upset. (END VIDEO CLIP)

COSTELLO: Mitt Romney's wife, Ann, says she is a big fan of the TV show, "Modern Family". That news making to the show's co-creator, who has offered Ann Romney a role. Steve Levitan (ph) says Ann Romney could officiate at the wedding of partners Cam and Mitchell with just one catch, as soon as same-sex marriage is legal. Levitan pointing out that her husband, Mitt Romney, opposes same-sex marriage.

Mitt Romney says he will repeal Obama care if he is elected. All this week, we have been looking at what he will do in place of that controversial law. One of the biggest concerns, middle class Americans who have had a tough time affording health insurance.

Our senior medical correspondent, Elizabeth Cohen, is here. I know that part of Obama care includes subsidies for those who can't quite afford insurance. What would happen to that if Mitt Romney puts his plan into place?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Those subsidies will go away. And I'll tell you those subsidies are pretty big. Like take a family of four that's earning about $50,000 they can get around $8,000 in subsidies to go buy an insurance policy. Those would go away.

And Governor Romney takes a very different approach. So let me read you what his spokesperson says. She says, "Mitt Romney will institute reforms that control the cost of health care so that all Americans will be able to afford the coverage they need." So instituting reforms.

COSTELLO: Ok. So -- I don't know -- it's just there's just so little information. You don't quite know what exactly he will do. And I think that's the problem many voters are having, like he has a plan, but they are short on specifics.

COHEN: Well, he has -- in speeches, he has given some specifics. And you can kind of have to go back and listen to his speeches, but we did. So let's take a listen to the reform specifically that he would like to do.

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MITT ROMNEY (R), PRESIDENTIAL NOMINEE: I want these individuals and businesses to be able to buy insurance across state lines, get the best deal they can get anywhere in the country. And I want them to be able to join associations of like-type of organizations so they can get bargaining power, purchasing power and get insurance at a reasonable rate.

I would like to make health savings accounts which really empower the consumer far more efficient and effective by such things as permitting health saving account funds to be used to pay the insurance premiums, which isn't allowed today.

(END VIDEO CLIP) COHEN: Now, these kinds of solutions, like for example allowing people to buy insurance across state lines or allowing individuals to band together, is that enough to make insurance affordable to middle class Americans who are having trouble affording it? Who knows. It will remain to be seen.

COSTELLO: All right. Elizabeth Cohen, thanks so much.

COHEN: Thanks.

We asked you to "Talk Back" on one of the big stories of the day. The question for you this morning, is race -- why is race an issue in Campaign 2012?

This from Michael, "It's only race baiting if it's not true. What Biden said was dead on and not just for black people."

This from Matissa, "Race will always be an issue. This election of President Obama brought all of those who have hiding and pretending for years. A post-racial America is a big joke."

This from Debbie, "Can I ask, first off, how talking about welfare is racist? Does that mean the Democrats think only minorities are on welfare and if so hello, doesn't that, in fact, make the Democrats racist?"

And this from Kevin, "With neither side providing a real plan what other issue is there?"

Please, continue the conversation, facebook.com/CarolCNN. Thanks, as always, for your comments.

And thanks for joining me today. I'm Carol Costello.

CNN NEWSROOM continues with Ashleigh Banfield after a short break.

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